27 April 2015
4QFY15 Results Update | Sector:
Oil & Gas
Petronet LNG
BSE SENSEX
27,438
Bloomberg
Equity Shares (m)
M.Cap. (INR b) / (USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Free float (%)
S&P CNX
8,305
PLNG IN
750
125/2
222/137
-3/-18/-6
50.0
CMP: INR167
TP: INR190 (+14%)
Neutral
Tax write-back boosts reported PAT; operationally below estimates
PLNG’s reported PAT at INR3b (est INR1.5b) was boosted by INR1.3b tax reversal
led by favourable ruling on its 80-IA tax benefit.
However, EBITDA at INR2.2b (est INR3.5b; -43% YoY, -35% QoQ) was significantly
below est. led by (a) lower Dahej volumes at 93tbtu (est 131tbtu; -20% YoY, -34%
QoQ) impacted by sharp cut in long term volume off-take and (b) negative
marketing margins on spot volumes at USD-0.24/mmbtu (v/s +0.55 in 4QFY15 and
-0.12 in 3QFY15).
Dahej utilization at 74% in 4QFY15; Kochi reloading revenue begins
Dahej re-gas volume at 93tbtu include 60tbtu (-35% YOY, -36% QoQ) long-term,
20.8tbtu (5.5x YoY, -26% QoQ) third-party and 12tbtu (-40% YoY, -32% QoQ) short
term volume.
Lower long term volumes: RasGas off-takers exercised 10% annual lower volume
flexibility. This was led by lower demand due to higher RasGas LNG price at
USD12/mmbtu v/s spot LNG of USD7-8/mmbtu and competitive liquid fuel prices.
As most of the 10% flexibility is exercised in 4QFY15, expect volumes in
subsequent quarters to be higher. PLNG earnings are also protected by take-or-
pay clause.
While the Kochi pipeline (Mangalore/Bangalore line) construction bottleneck
continues, PLNG earned INR600m from Kochi reloading services (6.9tbtu) thereby
limiting FY15 PBT loss at INR400m.
Dahej to expand to 17.5mmt, expansion to 15mmt to end by 2016
PLNG board approved further expansion of Dahej capacity to 17.5mmt. Expansion
to 15mmt is likely to complete by end-2016.
Valuation and View
We are marginally (1-2%) cutting our FY16/17 EPS to factor in lower volumes,
partly compensated by lower tax rate.
The stock trades at 12.3x FY17E EPS of INR13.6. Maintain Neutral with price target
of INR190/sh (FY17 basis) as we believe current valuations adequately factors
near-medium term growth.
Avg Val (INR M)/Vol ‘000 343/1,887
Financials & Valuation (INR Billion)
Y/E MAR
2015 2016E 2017E
395.0 405.3 385.4
Sales
14.4
16.2
19.1
EBITDA
8.8
8.4
10.2
PAT
10.0
11.1
13.6
EPS (INR)
5.4
9.6
21.9
EPS Gr. %
82.7
93.1
BV/Sh.INR 74.1
16.7
14.2
15.5
RoE (%)
14.4
15.1
16.7
RoCE (%)
23.4
23.4
Payout (%) 23.4
Valuation
16.7
15.0
12.3
P/E (x)
2.3
2.0
1.8
P/BV (x)
EV/EBITDA 10.0
9.6
7.7
Div. Yield
1.2
1.3
1.6
Estimate change
TP change
Rating change
Harshad Borawake
(HarshadBorawake@MotilalOswal.com); +91 22 3982 5432
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

Petronet LNG
Other key highlights
Expect Ras Gas volumes to improve in subsequent quarters:
Ras Gas contract
allows the off-takers 10% volume flexibility on an annual basis (calendar year).
RasGas annual contract is of 7.5mmt, implying 0.75mmt flexibility on both sides.
In 4QFY15, RasGas volumes were almost 0.7mmt lower than the required
quarterly runrate of 1.9mmt. Hence, we believe that almost all the annual
flexibility was exercised in the March quarter itself, the subsequent quarter
volumes will be higher. Nevertheless, PLNG’s earnings are protected by take-or-
pay clause.
Excerpt on the RasGas contract terms (Source: PLNG IPO document)
We have entered into an LNG Sale Purchase Agreement (“SPA”) on July 31, 1999
with Ras Laffan Liquefied Natural Gas Company Limited (“RasGas”) which was
further assigned by RasGas to RasGas (II) on July 2, 2002.
The SPA provides that we shall take or pay for if not taken the contracted quantities
of LNG for a period of 25 years.
We have entered into long term Gas Sale Purchase Agreements (“GSPA”) with GAIL,
IOC and BPCL for supply of re-gasified LNG in the proportion of 60:30:10 for a period
of 25 years.
Take or Pay Obligations:
PLL shall take or pay for if not taken the ACQ as may be
adjusted in accordance with the provisions of the SPA, referred to as “Adjusted
Annual Contract Quantity” or “AACQ”. The adjustments to the ACQ are permitted on
account of :
Make Good Gas:
to make up for any downward flexibilities exercised in previous
years,
Restoration Quantity:
to make up for any shortfalls in previous years due to
force majeure,
Upward Flexibility Quantity:
flexibility for taking additional quantities of upto
10% of ACQ in any year,
Carry Forward Aggregate:
adjustment for any quantities taken in short/excess
of AACQ in previous year, and
Downward Flexibility Quantity:
flexibility for deduction in quantity taken of
upto 10% of ACQ in any year.
80IA benefit:
PLNG reversed INR1.2b on account of favourable decision on its
80-IA tax benefit claim. Hence, we believe that the effective tax rate for PLNG in
the coming years will be lower than the current full tax rate. We now model
effective tax rate of 27% v/s earlier 32%.
27 April 2015
2

Petronet LNG
Exhibit 1: Petronet LNG: Key financial and operating performance metrics
(INR b)
Dahej Sales Volume (tbtu)
Long term
93.6
Third-party regas
15.0
Pure short term
26.4
Sub-total (Tbtu)
135.0
Kochi Sales Volume (tbtu)
Long term
Third-party regas
Pure short term
Sub-total (Tbtu)
Total (tbtu)
135.0
FY12
4Q
1Q
FY13
2Q
3Q
4Q
1Q
FY14
2Q
3Q
4Q
1Q
2Q
FY15
3Q 4Q % YoY % QoQ
60.0 -35%
20.8 446%
12.4 -40%
93.2
-20%
0%
-9%
-26%
-6%
96.0 90.2 96.5 93.9
92.3 98.4 91.9 92.0
96.4 93.9 94.3
10.7 17.4 14.1
3.7
18.3 12.0 17.8
3.8
24.8 30.9 28.0
20.5 27.4 30.0 24.4
19.0 12.4 10.6 20.5
16.8 24.4 18.1
127.2 135.0 140.6 122.0 129.5 122.8 120.2 116.3 138.0 149.2 140.4
-
-
-
-
-
-
na
na
1.1
0.3
-
-
-
-
na
na
2.3
0.7
0.7
1.3
1.0 2.4 247% 145%
3.4
1.0
0.7
1.3
1.0 2.4
143% 145%
127.2 135.0 140.6 122.0 129.5 122.8 123.6 117.3 138.7 150.5 141.4 95.6
-18% -32%
Source: Company, MOSL
Exhibit 2: QoQ volume decline primarily led by lower long term volumes
Tbtu
120
17
9
94
126
18
14
94
133
19
94
Long term
135
28
90
145
25
22
98
15
94
Third-party regas
135
127
Pure short term
141
30
14
97
130
19
18
92
Total (tbtu)
138
116
20
4
92
17
25
96
149
24
31
94
140
18
28
94
93
12
21
60
95
0
6
89
100
5
0
94
26 21
11
96
135
27
17
90
122
24
4
94
123
12
12
98
120
11
18
92
Source: Company, MOSL
Exhibit 3: Dahej capacity utilization averaged ~74% in 4QFY15
Volume (mmt)
Utilization (%)
96%
92%
110%
119% 112%
74%
76%
79%
115% 107%
112%
106% 107%
101% 107%
97% 103% 98%
95% 100%
Source: Company, MOSL
27 April 2015
3

Petronet LNG
Expansion projects on track
PLNG plans to expand its capacity from current 15mmtpa to 29mmtpa (Dahej:
10+1.5+5+2.5, Kochi: 5 and Gangavaram: 5)
Dahej 2nd jetty commissioned in April 2014:
PLNG commissioned its Second
jetty at Dahej in April 2014 at an estimated capex of INR8b. This jetty offers
operational flexibility and could add ~2mmt of additional volumes at current
capacity.
Dahej capacity to further expand to 17.5mmt:
PLNG is on track to complete the
nameplate capacity expansion at Dahej from 10 to 15mmtpa by end-2016.
Earlier PLNG had indicated capex savings of INR6b on Dahej expansion with
revised estimate of INR24b. Dahej total booked capacity stands at 14.75mmt
(GAIL – 2.5; GSPC – 2.25, BPCL – 1, IOCL – 1.5 and Long term – 7.5) v/s total
capacity of 15mmt. Off takers have already given an advance of INR6b towards
capex (in all will give INR12b ~INR2b/mmt) which will be will be settled over 15
years post commissioning of the expanded facility. PLNG board has approved
further expansion of Dahej terminal by 2.5mmt (INR12.5b) to 17.5mmt.
Gangavaram port receives state govt. approvals:
PLNG received the nod from
the Andhra Pradesh government to construct the terminal at Gangavaram. Post
EPC contract award, PLNG expects the terminal to be constructed in 36 months.
Exhibit 4: PLNG capacity to expand to 29mmtpa by 2017
36
30
24
18
12
6
0
Current
Mar-14
2016 end
2017-18
Kochi
5
Dahej
10
Dahej
(Ph-1)
1.5
Operatable Capacity (mmt)
Dahej
(Ph-2)
5
Dahej (Ph-3)
2.5
Gangavaram
5
Source: Company, MOSL
27 April 2015
4

Petronet LNG
Valuation and view
Petronet LNG is a direct play on the India’s natural gas deficit situation. While
the near term earnings growth is constrained by Kochi ramp-up, PLNG offers
long term revenue visibility with fixed contracts.
Key things to watch out would be (a) short term LNG prices and (b) timely
completion of Kochi-Mangalore-Bangalore Phase 2 pipeline – critical for Kochi
terminal ramp-up beyond 2 mmt.
We are marginally (1-2%) cutting our FY16/17 EPS to factor in lower volumes,
partly compensated by lower tax rate.
The stock trades at 12.3x FY17E EPS of INR13.6. Maintain Neutral with price
target (average of DCF and 12x FY17 EPS) of INR190/sh (FY17 basis) as we
believe current valuations adequately factors near-medium term growth.
Exhibit 5: Petronet LNG - Key Earnings model assumptions (Do not factor in Gangavaram terminal)
Exchange Rate (INR/USD)
Capacity (mmt)
Dahej
Kochi
Throughput (mmt)
Dahej
Kochi
Utilization rate (%)
Dahej
Kochi
Sales (TBTU)
Dahej
Kochi
Total
Re-gassification charges
Blended avg (INR/mmbtu)
Long-term/Third-Party/Spot
(INR/mmbtu)
Dahej
Kochi
Chg (%)
Marketing margin (INR/MMBTU)
Dahej
Kochi
FY08
40.2
5.0
5.0
6.4
6.4
128%
128%
FY09
46.1
5.0
5.0
6.4
6.4
128%
128%
FY10
47.6
10.0
10.0
7.9
7.9
79%
79%
FY11
45.5
10.0
10.0
8.8
8.8
88%
88%
FY12
47.9
10.0
10.0
10.9
10.9
109%
109%
FY13
54.5
10.0
10.0
10.4
10.4
104%
104%
FY14
60.6
15.0
10.0
5.0
9.8
9.7
0.1
65%
97%
1%
489
4
493
38.6
FY15E
60.8
16.5
12.0
5.0
11.2
11.1
0.1
68%
93%
2%
521
5
526
35.9
FY16E
63.0
17.0
12.0
5.0
11.1
11.0
0.1
65%
92%
2%
553
5
558
37.8
FY17E
64.0
17.5
12.5
5.0
12.1
12.0
0.1
69%
96%
2%
604
5
609
40.2
322
322
30.7
321
321
32.8
398
398
24.7
440
440
31.7
548
548
38.5
525
0
525
41.2
28.2
29.5
30.9
32.1
33.8
35.5
37.2
62.8
39.1
65.9
5.0%
41.1
69.2
5.0%
43.1
72.7
5.0%
14.05
14.0
-10.3
12.1
22.2
38.2
21.5
0.0
-1.9
0.0
5.0
0.0
0.0
0.0
Source: Company, MOSL
27 April 2015
5

Petronet LNG
Story in charts
Exhibit 6: India gas deficit situation expected to continue in
the medium term
Supply Deficit (mmscmd)
Exhibit 7: PLNG has 63% of India’s currently operating LNG
import capacity (mmt)
PLNG (Dahej, Kochi, Gangavaram)
Gail (Dabhol)
Shell (Hazira)
Likley new
27.0
Total
24.0
5.0
18.5
4.0
5.0
13.5
13.5
5.0
3.5
5.0
3.5
3.5
17
15
10
10
10
FY11
FY12
FY13
FY14
FY15
43.0
37.0
32.0
5.0
5.0
22
5.0
5.0
5.0
22
6.0
5.0
5.0
84
87
120
169
222
248
260
244
245
255
27
FY16
FY17
FY18
Source: MoPNG, Industry, MOSL
Source: Company, MOSL
Exhibit 8: Expect PLNG to report ~10% volume growth
through FY18
(In mmt)
Dahej
Kochi
Total
16.5
15.5
14.5
1.0 1.5 2.0
11.2 11.1 12.1
10.9 10.4
9.8
0.1
8.8
0.1 0.1
0.1
13.5 14.0 14.5
11.1 11.0 12.0
9.7
Exhibit 9: Expect PLNG to report 20% EPS growth through
FY18
19.9
14.6 15.3
8.3
5.4
9.5 10.0
11.1
17.2
13.6
22.6
7.9
FY10
FY12
FY14
FY16E
FY18E
FY20E
FY10
FY12
FY14
FY16E
FY18E
FY20E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 10: Expect return ratios to remain robust (%)
40
30
20
10
0
FY10
FY12
FY14
FY16E
FY18E
FY20E
RoE
RoCE
Exhibit 11: 1 Yr Fwd Petronet LNG P/E Chart
20
15
10
5
0
5.2
PE (x)
Median(x)
Peak(x)
Min(x)
Avg(x)
18.9
16.0
10.7
11.2
Source: Company, MOSL
Source: Company, MOSL
27 April 2015
6

Petronet LNG
Corporate profile: Petronet LNG
Company description
Petronet LNG (Bloomberg: PLNG) was formed as a
joint venture by the government of India to import
LNG and set up LNG terminals in India. Each
promoter - GAIL, ONGC, IOCL and BPCL, holds
12.5% stake in PLNG. The company owns India's
first LNG receiving and regasification terminal of
5mmtpa at Dahej commissioned in February 2004
and 5mmtpa terminal at Kochi commissioned in
2QFY14. It has a tied up long-term off-take
contracts of 14.75mmtpa effective from its
capacity expansion to 15mmtpa at Dahej in 2016.
Exhibit 12: Sensex rebased
Petronet LNG
240
215
190
165
140
Sensex - Rebased
Exhibit 13: Shareholding pattern (%)
Mar-15
Promoter
DII
FII
Others
50.0
4.3
22.6
23.0
Dec-14
50.0
5.6
21.0
23.3
Mar-14
50.0
4.4
19.9
25.7
Exhibit 14: Top holders
Holder Name
GDF International
T. Rowe Price International Growth And Incomefund
Government Pension Fund Global
Franklin Templeton Investment Funds
Smallcap World Fund INC
% Holding
10.0
3.4
3.3
1.5
1.4
Note: FII Includes depository receipts
Exhibit 15: Top management
Name
Saurabh Chandra
Ashok Kumar Balyan**
Designation
Chairman
Managing Director & CEO
Exhibit 16: Directors
Name
Saurabh Chandra*
Ashok Kumar Balyan**
Philip Olivier
R K Garg
Rajender Singh
Sushil Kumar Gupta*
**To retire; *Independent
Name
Arun Kumar Misra*
Debasis Sen
Varadarajan Srinivasan
B C Tripathi
D K Sarraf
Exhibit 17: Auditors
Name
T R Chadha & Co
Sanjay Gupta & Associates
Type
Statutory
Cost Auditor
Exhibit 18: MOSL forecast v/s consensus
EPS
(INR)
FY16
FY17
MOSL
forecast
11.1
13.6
Consensus
forecast
12.4
14.9
Variation
(%)
-10.5
-8.7
27 April 2015
7

Petronet LNG
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
RM + Other expenses
Employee Costs
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Forex fluctuations
Adj. PAT
Change (%)
Prio reriod tax reversal
Adj. PAT
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Curr. Assets, L & Adv.
Inventory
Debtors
Cash & Bank Balance
Loans & Adv. and Other Assets
Other Current Assets
Current Liab. & Prov.
Liabilities
Provisions
Net Current Assets
Application of Funds
E: MOSL Estimates
2010
106,491
26.3
97,822
204
8,465
7.9
1,609
1,839
978
5,995
1,950
32.5
4,045
-26.7
4,045
2011
131,973
23.9
119,504
306
12,163
9.2
1,847
1,931
680
9,065
2,868
31.6
6,197
53.2
6,197
2012
226,959
72.0
207,964
298
18,697
8.2
1,842
1,657
706
15,905
4,950
31.1
10,955
76.8
10,955
2013
314,672
38.6
295,869
370
18,433
5.9
1,866
1,184
865
16,248
5,710
35.1
952
11,490
4.9
11,490
2014
377,476
20.0
362,025
466
14,984
4.0
3,081
2,196
838
10,545
3,426
32.5
7,119
-38.0
7,119
2015
395,010
4.6
380,049
571
14,390
3.6
3,154
2,935
1,548
9,849
2,347
23.8
7,502
5.4
1,323
8,825
(INR Million)
2016E
2017E
405,329
385,383
2.6
-4.9
388,452
365,565
628
691
16,249
19,127
4.0
5.0
3,580
3,963
2,771
2,536
1,542
1,323
11,440
13,951
3,089
3,767
27.0
27.0
8,351
9.6
8,351
10,184
21.9
10,184
2010
7,500
14,849
22,349
24,998
3,262
50,609
35,495
6,667
28,829
13,184
5,386
2011
7,500
19,302
26,802
29,891
3,480
60,173
35,538
8,513
27,025
20,122
11,649
2012
7,500
27,698
35,198
30,340
3,630
69,168
35,568
10,353
25,215
32,900
1,399
2013
7,500
36,997
44,497
27,182
3,910
75,589
35,796
12,217
23,579
43,305
1,399
2014
7,500
42,361
49,861
31,965
5,530
87,356
77,946
15,295
62,650
8,799
1,399
2015E
7,500
48,109
55,609
29,477
5,530
90,616
86,946
18,449
68,497
13,640
900
(INR Million)
2016E
2017E
7,500
7,500
54,506
62,309
62,006
69,809
29,477
24,477
5,687
5,870
97,171
100,156
106,546
22,029
84,517
9,240
900
107,677
25,992
81,685
11,740
900
2,223
5,035
3,405
1,523
31
2,480
8,472
1,575
3,165
125
7,124
12,859
9,839
2,689
86
10,366
16,898
12,685
2,570
26
9,557
20,156
12,327
4,098
140
8,826
13,428
16,472
4,098
4
9,994
18,878
4,903
4,098
4
9,503
17,949
7,659
4,098
4
7,449
1,557
3,210
50,608
12,601
1,838
1,377
60,173
20,658
2,285
9,654
69,168
32,940
2,299
7,306
75,589
29,042
2,729
14,507
87,355
32,520
2,729
7,579
90,616
32,634
2,729
2,514
97,171
30,654
2,729
5,830
100,156
27 April 2015
8

Petronet LNG
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation (x)
P/E
Cash P/E
EV / EBITDA
EV / Sales
Price / Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios
Debtors (No. of Days)
Asset Turnover (x)
Leverage Ratio
Net Debt / Equity (x)
Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Others
Interest
Direct Taxes Paid
(Inc)/Dec in Wkg. Capital
CF from Op. Activity
(Inc)/Dec in FA & CWIP
(Pur)/Sale of Investments
Inc from Invst
CF from Inv. Activity
Inc / (Dec) in Debt
Interest Paid
Dividends Paid (incl.tax)
CF from Fin. Activity
Inc / ( Dec) in Cash
Add: Opening Balance
Closing Balance
E: MOSL Estimates
2010
5.4
3.2
29.8
1.8
38
2011
8.3
5.8
35.7
2.0
28
2012
14.6
12.2
46.9
2.5
21
11.4
13.7
8.0
0.7
3.6
1.5
19.2
16.3
18
1.5
1.1
25.2
19.9
20
1.5
1.2
35.3
27.2
21
2.3
0.7
2013
15.3
12.8
59.3
2.5
19
10.9
13.0
7.8
0.5
2.8
1.5
28.8
24.1
21
2.9
0.4
2014
9.5
5.4
66.5
1.5
19
17.6
31.0
10.0
0.4
2.5
0.9
15.1
15.6
20
3.0
0.5
2015
10.0
7.6
74.1
2.0
23
16.7
22.1
10.0
0.4
2.3
1.2
16.7
14.4
24
2.9
0.3
2016E
11.1
6.4
82.7
2.2
23
15.0
26.2
9.6
0.4
2.0
1.3
14.2
15.1
21
2.8
0.5
2017E
13.6
8.3
93.1
2.7
23
12.3
20.1
7.7
0.4
1.8
1.6
15.5
16.7
21
2.6
0.3
2010
5,995
1,609
-450
1,740
-1,640
3,026
10,279
-10,472
-2,337
452
-12,358
2,181
-1,740
-1,536
-1,094
-3,173
6,577
3,405
2011
9,064
1,847
-381
1,807
-2,179
-1,717
8,441
-7,486
-6,262
587
-13,161
7,160
-2,740
-1,531
2,890
-1,830
3,405
1,575
2012
15,525
1,842
-589
1,430
-4,839
-985
12,385
-10,980
10,381
803
204
411
-2,992
-1,743
-4,325
8,264
1,575
9,839
2013
17,203
1,866
-670
1,184
-5,387
4,037
18,234
-8,406
0
721
-7,685
-2,420
-3,102
-2,179
-7,702
2,846
9,839
12,685
2014
10,545
3,081
-617
2,030
-1,927
-3,527
9,586
-8,761
116
617
-8,028
2,050
-1,821
-2,195
-1,966
-408
12,685
12,277
2015E
9,849
3,154
0
0
-2,347
8,073
18,729
-13,841
499
0
-13,342
513
0
-1,755
-1,242
4,145
12,327
16,472
(INR Million)
2016E
2017E
11,440
13,951
3,580
3,963
0
0
0
0
-2,932
-3,584
-6,504
-560
5,584
13,770
-15,200
0
0
-15,200
0
0
-1,954
-1,954
-11,570
16,472
4,903
-3,631
0
0
-3,631
-5,000
0
-2,382
-7,382
2,757
4,903
7,659
27 April 2015
9

This document has been prepared by Motilal Oswal Securities Limited (hereinafter referred to as Most) to provide information about the company(ies) and/sector(s), if any, covered
Petronet
and may be
in the report
LNG
distributed by it and/or its affiliated company(ies). This report is for personal information of the selected recipient/s and does not construe to be any investment, legal or taxation advice to you. This research report does
not constitute an offer, invitation or inducement to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not
for public distribution and has been furnished to you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal
recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider
whether it is suitable for their particular circumstances and, if necessary, seek professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as
up, and investors may realize losses on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur.
MOSt and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We and our affiliates have investment banking and other business relationships with a
some companies covered by our Research Department. Our research professionals may provide input into our investment banking and other business selection processes. Investors should assume that MOSt and/or
its affiliates are seeking or will seek investment banking or other business from the company or companies that are the subject of this material and that the research professionals who were involved in preparing this
material may educate investors on investments in such business. The research professionals responsible for the preparation of this document may interact with trading desk personnel, sales personnel and other
parties for the purpose of gathering, applying and interpreting information. Our research professionals are paid on the profitability of MOSt which may include earnings from investment banking and other business.
MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.
Additionally, MOSt generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders,
and other professionals or affiliates may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary
trading and investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing
among other things, may give rise to real or potential conflicts of interest. MOSt and its affiliated company(ies), their directors and employees and their relatives may; (a) from time to time, have a long or short position
in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation
or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with
respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations
made by the analyst(s) are completely independent of the views of the affiliates of MOSt even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
Reports based on technical and derivative analysis center on studying charts company's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as
such, may not match with a report on a company's fundamental analysis. In addition MOST has different business segments / Divisions with independent research separated by Chinese walls catering to different set
of customers having various objectives, risk profiles, investment horizon, etc, and therefore may at times have different contrary views on stocks sectors and markets.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its affiliates or
employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSt or any of
its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The information contained herein is
based on publicly available data or other sources believed to be reliable. Any statements contained in this report attributed to a third party represent MOSt’s interpretation of the data, information and/or opinions
provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not intended to be a complete statement or
summary of the securities, markets or developments referred to in the document. While we would endeavor to update the information herein on reasonable basis, MOSt and/or its affiliates are under no obligation to
update the information. Also there may be regulatory, compliance, or other reasons that may prevent MOSt and/or its affiliates from doing so. MOSt or any of its affiliates or employees shall not be in any way
responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. MOSt or any of its affiliates or employees do not provide, at any time,
any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.
The recipients of this report should rely on their own investigations.
This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision based on
this report or for any necessary explanation of its contents.
Most and it’s associates may have managed or co-managed public offering of securities, may have received compensation for investment banking or merchant banking or brokerage services, may have received any
compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months.
Most and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of Most or its associates during twelve months preceding the date of distribution of the research report
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities
mentioned in this report. To enhance transparency, MOSt has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the
report.
Motilal Oswal Securities Limited is under the process of seeking registration under SEBI (Research Analyst) Regulations, 2014.
There are no material disciplinary action that been taken by any regulatory authority impacting equity research analysis activities
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be
directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally responsible for preparation
of MOSt research receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues
Disclosure of Interest Statement
Analyst ownership of the stock
Served as an officer, director or employee
PETRONT LNG
No
No
Disclosures
Regional Disclosures (outside India)
For U.S.
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOSt & its group companies to registration or licensing requirements within such jurisdictions.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In
addition MOSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the
United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein are not available to or
intended for U.S. persons.
This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major
institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the
"Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOSL has entered into a chaperoning
agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL,
and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors
Regulations and is a subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to
accredited investors, as defined in the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Anosh Koppikar
Kadambari Balachandran
Email : anosh.Koppikar@motilaloswal.com
Email : kadambari.balachandran@motilaloswal.com
Contact : (+65)68189232
Contact : (+65) 68189233 / 65249115
Office Address : 21 (Suite 31),16 Collyer Quay,Singapore 04931
For Singapore
Motilal Oswal Securities Ltd
27 April 2015
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
10